Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations [Abstract]

Discontinued Operations

4. Discontinued Operations

In recent years, we have undertaken several separate initiatives to divest certain practices within the Financial Consulting segment in order to enable us to devote more of our energy and financial resources to the remaining businesses of the Company where we have a more substantial market presence. On December 30, 2011, we sold the Accounting Advisory (“AA”) practice to a group of investors including the managing director of the practice at the time. On September 30, 2010, we completed a sale of a portion of the Disputes and Investigations (“D&I”) practice and wound down the remaining practice operations as of that same date. Additionally, during the third quarter of 2010 we exited the Utilities Consulting (“Utilities”) practice. In December 2009, our Board of Directors approved a plan to divest the businesses that included the international operations of our Japan office (“Japan”). On June 30, 2010, we exited Japan via a wind down of the business.

The Company recognized a loss of $1.9 million in connection with the sale of AA in 2011 and a gain of $1.2 million in connection with the sale of D&I in 2010.

As a result of these actions, the operating results of AA, D&I, Utilities and Japan are reported as “discontinued operations.” All other operations of the business are considered “continuing operations.” Amounts previously reported have been reclassified to conform to this presentation in accordance with FASB ASC Topic 205, “Presentation of Financial Statements,” to allow for meaningful comparison of continuing operations. The Consolidated Balance Sheets as of September 30, 2012 and December 31, 2011 aggregate amounts associated with the discontinued operations as described above. Summarized operating results of discontinued operations are presented in the following table (amounts in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012		2011			2012		2011
Revenues	$	—	$	5,322		$	683	$	18,038
Income (loss) from discontinued operations before income tax expense (1)	$	78	$	(1,393	)	$	836	$	20
Net income (loss) from discontinued operations	$	47	$	(563	)	$	518	$	324

(1) Includes goodwill impairment charge of $1.9 million for both the three and nine months ended September 30, 2011, respectively, allocated to the accounting advisory practice.

The carrying amounts of the major classes of assets and liabilities aggregated in discontinued operations in the Consolidated Balance Sheets as of September 30, 2012 and December 31, 2011 are presented in the following table.

	September 30, 2012		December 31, 2011
Assets
Receivables from clients, net	$	251	$	3,301
Other current assets		—		44
Total current assets		251		3,345
Total assets	$	251	$	3,345
Liabilities
Accrued payroll and related benefits	$	—	$	585
Accounts payable, accrued expenses and other liabilities		106		180
Total current liabilities		106		765
Other non-current liabilities		—		49
Total liabilities	$	106	$	814